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Retiree COLA signed into law

Retiree COLA signed into law

Advocate staff photo by TRAVIS SPRADLING -- Gov. Bobby Jindal, seated, shakes hands with Bob Lawyer, right, Board of Trustees Chairman for the Teachers Retirement System of Louisiana, after Jindal signed several cost of living adjustment retirement bills Sunday including SB21, which gives a statewide1.5 percent increase for public education retirees or certain beneficiaries, Sunday at the State Capitol. Others, from left to right, are Senate President John Alario, R-Westwego, Senate Insurance Committee Chairman Elbert Guillory, D-Opelousas, and Bonnie Heinen, a La. State Police retiree.Advocate staff photo by TRAVIS SPRADLING -- Gov. Bobby Jindal, center, shakes hands Sunday with Ben Pressburg, right, founder and administrative coordinator at the Retired Louisiana State Police Communication Network, at the State Capitol. Senate Insurance Committee Chairman Elbert Guillory, D-Opelousas, is at left. Jindal had just signed bills giving several retirement groups for state employees a 1.5 percent cost of living adjustment, including State Police.Cindy Rougeou, Executive Director, Louisiana State Employees Retirement System (LASERS) leans forward to take a ceremonial copy of a just-signed retirement bill from Gov. Bobby Jindal, seated, as retirement committee chairmen Rep. Kevin Pearson, left, R-Slidell, and Sen. Elbert Guillory, D-Opelousas, amnd others look on, on Sunday, June 1, the next to last day of the Legislative session. Senate President John Alario, R-Westwego, is directly behind Jindal, during the signing of several bills affecting state employees.

“It’s a victory on a number of different fronts,” said state Rep. Joel Robideaux, R-Lafayette.

Retirement system investment earnings over an amount set in law go into the special accounts the Legislature set up for the purpose of COLA granting.

Robideaux sponsored House Bill 1225, which would require more of the systems’ investment earning to go into reduction of their unfunded accrued liabilities — money required to fill commitments made to retirees and current members over time.

“This legislation is a fiscally responsible way to give retirees a COLA and to reform the systems to make them financially stable for future retirees,” Jindal said.

If the system is less than 55 percent funded, no benefit increase would be granted. If it’s 55 percent but less than 65 percent funded, and the Legislature hasn’t granted an increase in the prior year, a 1.5 percent raise could be granted.

The systems would have to be 85 percent or greater funded to get a 3 percent benefit increase.

HB1225 had to pass in order for the COLAs into effect.

Jindal also signed the measures that actually put the cost of living adjustments into effect: Senate Bill 18 grants COLAs for members of LASERS, the Louisiana State Employees’ Retirement System; Senate Bill 16 gives the raises to retired state police; Senate Bill 19 for Louisiana School Employees’ Retirement System; and Senate Bill 21 for Teachers’ Retirement System of Louisiana.